KARACHI: The flow of foreign direct investment (FDI) into the country has declined by 24 percent to $416 million during first quarter (July – September) of current fiscal year, State Bank of Pakistan (SBP) said on Friday.
The FDI was $545 million in the same quarter of the last fiscal year.
The inflow under this head fell by 17.5 percent to $621 million during first quarter of the current fiscal year as compared with $753 million in the same quarter of the last fiscal year.
Similarly, the outflows of FDI recorded $205 million during July – September of 2020/2021 million as compared with $207 million in the same period of the last fiscal year.
The inflows in the stock market witnessed sharp decline during the period. The portfolio investment witnessed 578 percent decline when compared with outflow of $108.5 million during the first quarter of the current fiscal year as compared with inflows of $22.7 million in the same period of the last fiscal year.
The net inflows of foreign private investment fell by 46 percent to $307 million during July – September 2020/2021 as compared with $586 million in the same period of the last fiscal year.
KARACHI: The share market gained 95 points on Friday amid mixed trading sessions and political uncertainty.
The benchmark KSE-100 of Pakistan Stock Exchange (PSX) closed at 40,164 points from previous day’s closing of 40,070 points, showing an increase of 95 points.
Analysts at Topline Securities said that KSE-100 index depicted erratic behavior today, where it traded between an intraday high of 152 points and intraday low of -326 points, to finally close at 40,164.
Major contribution to the index came from HBL, MEBL, UNITY, FFBL and DGKC, where they cumulatively contributed 158 points to the index, whereas MTL, PPL, LUCK, ENGRO and FCEPL lost value to weigh down the index by -78 points.
Low participation was observed today, where investors preferring to remain on sideline, given political noise in the country where opposition is staging multiple power shows against the government.
Traded volume and value for the day stood at 254 million shares and Rs.7.7 billion. UNITY was today`s volume leader with around 45 million shares.
KARACHI: The Pak Rupee strengthened by 37 paisas against dollar on Friday owing to improved economic indicators and positive sentiments.
The rupee ended Rs162.49 to the dollar from previous day’s closing of Rs162.86 in interbank foreign exchange market.
Currency experts said that latest exchange rates showed the dollar weakened by five month low.
They said that the since August 2020 the dollar weakened by Rs5.57. The greenback reached to the highest point of Rs168.43 on August 27, 2020.
They said that the fall in dollar value to ease in pressure on debt repayments of Rs575 billion.
Workers’ remittances remained above $2 billion for the fourth consecutive month in September.
They increased to $2.3 billion, 31.2 percent higher than the same month last year and 9 percent higher than in August, the State Bank of Pakistan (SBP) recently said.
KARACHI: Federal Board of Revenue (FBR) has updated tax rate for profit on debt to be applicable during tax year 2021 (July 01, 2020 – June 30, 2021).
The FBR issued Income Tax Ordinance, 2001 (updated June 30, 2020) after incorporating amendments brought through Finance Act, 2020. The FBR updated following rate of tax on profit on debt.
The rate of tax for profit on debt imposed under section 7B shall be—
S.NO
Profit on Debt
Rate of tax
(1)
(2)
(3)
1.
Where profit on debt does not exceed Rs.5,000,000
15%
2.
Where profit on debt exceeds Rs.5,000,000 but does not exceed Rs.25,000,000
17.5%
3.
Where profit on debt exceeds Rs.25,000,000 but does not exceed Rs. 36,000,000
20%
The tax rate is deducted under Section 7B of Income Tax Ordinance, 2001, under which:
Section 7B. Tax on profit on debt.—(1) Subject to this Ordinance, a tax shall be imposed, at the rate specified in Division IIIA of Part I of the First Schedule, on every person, other than a company, who receives a profit on debt from any person mentioned in clauses (a) to (d) of sub-section (1)of section 151.
(2) The tax imposed under sub-section (1) on a person, other than a company, who receives a profit on debt shall be computed by applying the relevant rate of tax to the gross amount of the profit on debt.
(3) This section shall not apply to a profit on debt that –
ISLAMABAD: Federal Board of Revenue (FBR) has updated income tax rate on dividend received from a company during tax year 2021 (July 01, 2020 – June 30, 2021).
The FBR issued Income Tax Ordinance, 2001 (updated up to June 30, 2020) incorporating amendments brought through Finance Act, 2020. The FBR updated following rate of dividend tax:
The rate of tax imposed under section 5 on dividend received from a company shall be-
(a) 7.5 percent in the case of dividends paid by Independent Power Producers where such dividend is a pass through item under an Implementation Agreement or Power Purchase Agreement or Energy Purchase Agreement and is required to be re-imbursed by Central Power Purchasing (CPPA-G) or its predecessor or successor entity.
(b) 15 percent in mutual funds and cases other than those mentioned in clauses (a) and (c).
(c) 25 percent in case of a person receiving dividend from a company where no tax payable by such company, due to exemption of income or carry forward of business losses under Part VIII of Chapter III or claim of tax credits under Part X of Chapter III.
Section 5 of Income Tax Ordinance, 2001 explains tax on dividends as:
Section 5. Tax on dividends.— (1) Subject to this Ordinance, a tax shall be imposed, at the rate specified in Division III of Part I of the First Schedule, on every person who receives a dividend from a company or treated as dividend under clause (19) of section 2.
(2) The tax imposed under sub-section (1) on a person who receives a dividend shall be computed by applying the relevant rate of tax to the gross amount of the dividend.
(3) This section shall not apply to a dividend that is exempt from tax under this Ordinance.
ISLAMABAD: Federal Board of Revenue (FBR) has updated rate of super tax to be applicable for tax year 2021 (July 01, 2020 – June 30, 2021).
The FBR issued Income Tax Ordinance, 2001 after incorporating amendment brought through Finance Act, 2020. The FBR issued the following updated rate of super tax:
Provided that in case of a banking company, super tax for tax year 2019 shall be payable, on estimate basis, by thirtieth day of June, 2018.
Super tax was introduced through Finance Act, 2015 by inserting Section 4B to Income Tax Ordinance, 2001.
The section 4B is read as:
4B. Super tax for rehabilitation of temporarily displaced persons.― (1) A super tax shall be imposed for rehabilitation of temporarily displaced persons, for tax years 2015 and onwards, at the rates specified in Division IIA of Part I of the First Schedule, on income of every person specified in the said Division.
(2) For the purposes of this section, “income” shall be the sum of the following:—
(i) profit on debt, dividend, capital gains, brokerage and commission;
(ii) taxable income (other than brought forward depreciation and brought forward business losses) under section (9) of this Ordinance, if not included in clause (i);
(iii) imputable income as defined in clause (28A) of section 2 excluding amounts specified in clause (i); and
(iv) income computed, other than brought forward depreciation, brought forward amortization and brought forward business lossess under Fourth, Fifth, Seventh and Eighth Schedules.
(3) The super tax payable under sub-section (1) shall be paid, collected and deposited on the date and in the manner as specified in sub-section (1) of section 137 and all provisions of Chapter X of the Ordinance shall apply.
(4) Where the super tax is not paid by a person liable to pay it, the Commissioner shall by an order in writing, determine the super tax payable, and shall serve upon the person, a notice of demand specifying the super tax payable and within the time specified under section 137 of the Ordinance.
(5) Where the super tax is not paid by a person liable to pay it, the Commissioner shall recover the super tax payable under subsection (1) and the provisions of Part IV,X, XI and XII of Chapter X and Part I of Chapter XI of the Ordinance shall, so far as may be, apply to the collection of super tax as these apply to the collection of tax under the Ordinance.
(6) The Board may, by notification in the official Gazette, make rules for carrying out the purposes of this section.
KARACHI: Sindh Revenue Board (SRB) on Thursday granted exemption from sales tax on services for projects funded by United States Agency for International Development (USAID).
The SRB in a statement said that with approval of the Sindh government it had exempted from the whole of the sales tax payable on such taxable services and are received or procured by the USAID or the Implementing Partners of the USAID under the Sindh Basic Education Program (SBEP) funded by way of grant-in-aid provided by the USAID under the framework of the Pakistan Enhanced Partnership Agreement (PEPA) of 2010 signed between the United States of America and the Islamic Republic of Pakistan.
The SRB through another notification to grant exemption from the whole of the sales tax payable on such taxable services and are received or procured by the Municipal Delivery Service Program- Sindh (MSDP) funded by way of grant-in-aid provided by the USAID under the framework of the Pakistan Enhanced Partnership Agreement (PEPA) of 2010 signed between the United States of America and the Islamic Republic of Pakistan.
ISLAMABAD: The World Bank will provide a concessional financing to support Pakistan’s two power projects.
Prime Minister Imran Khan today witnessed the signing ceremony of two financing agreements worth $ 1.15 billion with the World Bank.
This is concessional financing being provided by the World Bank for the two projects to support hydropower and renewable energy development in Khyber Pakhtunkhwa, evacuation and transmission of power from DASU Hydropower Project.
Federal Minister for Economic Affairs Makhdum Khusro Bakhtyar, Federal Minister for Power Omar Ayub Khan, Chief Minister Khyber Pakhtunkhwa Mahmood Khan, Advisor to CM Khyber Pakhtunkhwa Himayat Ullah Khan were also present.
The projects’ details are: i. Khyber Pakhtunkhwa Hydropower and Renewable Energy Development (KHRE) Project – $450.0 Million.
The project’s development objective is to increase renewable energy generation and strengthen the capacity of associated institutions in Khyber Pakhtunkhwa.
The Khyber Pakhtunkhwa Hydropower and Renewable Energy Development (KHRE) is a transformational program that would help in building capacity and institutions for harvesting the vast renewable energy potential of the Khyber Pakhtunkhwa Province.
The project will support the
(i) construction of 88MW Gabral-Kalam Hydropower Project; and
(ii) construction of 157MW Madyan Hydropower Project.
It would provide planning and management capability to help transform Pakhtunkhwa Energy Development Organization (PEDO) into a world class entity for development of renewable energy resources. ii. Evacuation of Power from DASU Hydropower (Phase-I) Project – US$700.0 million:
The objective of the project is evacuation and transmission of power from 2160 MW Dasu Hydropower (Phase-I) Project to respective load centers of DISCOs by construction of 765 kV double circuit transmission line from DASU HPP to Islamabad via Mansehra.
It will also facilitate in evacuation of power from new upcoming projects in that area. Noor Ahmed, Secretary, Economic Affairs Division signed the two loan agreements on behalf of Government of Pakistan while the representatives of Government of Khyber Pakhtunkhwa, WAPDA and National Transmission & Dispatch Company (NTDC) signed their respective project agreements.
Najy Benhassine, Country Director, World Bank signed the agreements on behalf of the World Bank.
Prime Minister Imran Khan stated that Pakistan values its partnership with the World Bank and the Government will continue with the objective of socio-economic uplift of the people of Pakistan.
The Country Director of WB reiterated his commitment to support Pakistan and appreciated the government’s resolve, efforts and measures in the fight against COVID-19 and continuing efforts for structural reforms.
Makhdum Khusro Bakhtyar, Minister for Economic Affairs, while thanking the World Bank for its continued support, said that Government of Pakistan is committed to continue the structural reforms process in the country.
ISLAMABAD: Federal Board of Revenue (FBR) has signed an agreement with Chartered Financial Analyst (CFA) Institute for initially 10 ‘Regulator Scholarships’ for FBR’s officers and officials, said a notification issued on Thursday.
The CFA Institute, an America-based Organization, is a global association of investment professionals. The organization offers Certifications for Chartered Financial Analyst (CFA), Investment Performance Measurement (CIPM) and Investment Foundations Certificate. Currently, CFA Institute offices are located in New York City, London, Hong Kong, Mumbai, Toronto, and Charlottesville, Virginia, USA.
The CFA Program is a professional credential offered internationally by the CFA Institute to investment and financial professionals and is recognized as a ‘Gold Standard’ qualification in investment management. The program covers a broad range of topics relating to investment management, financial analysis, quantitative analysis, equities, fixed income and derivatives, and provides generalist knowledge of other areas of finance combined with real world skills and case studies. A candidate who successfully completes the program and meets other professional requirement is awarded the “CFA Charter” and becomes a CFA.
Under the Scholarship, Program Enrollment Fee is waived off and exams registration fee is reduced to USD 350 compared to standard registration fee of USD 1,000.
FBR’s workforce needs to equip itself with the modern skills and techniques involved in investment management, financial analysis and all other relevant areas to better understand the intricacies involved in financial management and income generated through various investment vehicles. Therefore, FBR’s officers/officials are encouraged to benefit from the scholarship programme to leverage the ongoing professional learning and industry network that CFA Institute and CFA Society Pakistan can provide.
Interested candidates must apply and be awarded the scholarship before registering for an exam, so that scholarship discount will be applied at the time of payment. The process is:
i) Candidates set up a CFA account and apply through the online system for a regulator scholarship.
ii) Regulator approvers log in to the system and award, or decline the scholarship application.
iii) If awarded, the candidate is notified by the CFA Institute. The scholarship is then applied to their CFA account, so that when they register for an exam the discount is applied at time of payment. All further activity is directly between the candidate and the CFA Institute.
iv) If declined, the candidate is notified by the CFA Institute and may choose to apply for the exam as normal without the discount.
The selection of eligible candidates would be done by International Taxes, FBR. After having gone through the selection exercise, the names of the selected candidates will be forwarded to the CFA Institute for the grant of scholarship.
KARACHI: The liquid foreign exchange reserves of the country have declined by $336 million to $19.015 billion by week ended October 09, 2020, State Bank of Pakistan (SBP) said on Thursday.
The foreign exchange reserves of the country were at $19.351 billion by week ended October 02, 2020.
The official reserves of SBP fell by $357 million to $11.798 billion by week ended October 09, 2020 as against $7.196 billion a week ago.
The SBP attributed the decline in foreign exchange reserves to external debt repayment of $507 million during the week.
